BUY OR SELL-Toyota, Honda; down, but not out

miércoles 10 de diciembre de 2008 10:50 CET

By Chang-Ran Kim, Asia autos correspondent

TOKYO Dec 10 (Reuters) - Japanese auto stocks have been pummelled this year by a sharp global slide in car demand as consumers either put off buying big-ticket items or face tighter credit due to the financial crisis.

Toyota Motor Corp (7203.T: Cotización), Honda Motor Co (7267.T: Cotización) and other Japanese exporters are also suffering from a stronger yen JPY=, which hit 13-year highs in October.

Uncertainty over when the world's economy, and car demand, will recover has been compounded by an even bigger question mark over the fate of the top three U.S. car makers, although a tentative deal to tide them over until 2009 may have been reached. [ID:nN09294627]

For a Graphic on Japanese automakers' shares, click:



"This is not a buying time for either Toyota or Honda," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

"We've no idea how far the yen will advance. Also, if General Motors Corp (GM.N: Cotización) actually goes into bankruptcy there could be some kind of demands made on Toyota. The whole issue of the Big Three is a big danger for the entire automobile industry."   Continuación...